Intuit Bookkeeping Exam Update 2024-
2025 | Intuit Bookkeeping Professional
Certificate Exam 2024-2025 Questions
and Correct Answers Rated A+
Four Key Elements of Bookkeeping Ethics - ANSWER-Honesty, Objectivity,
Confidentiality and Professionalism
What is DEALER - ANSWER-Dividends + Expenses + Assets = Liabilities + Owner's
Equity (beginning) + Revenue
What's is the accounting Equation? - ANSWER-Assets = Liabilities + Equity
Profit and Loss statement. Shows the company's revenues and expenses during a
particular period - ANSWER-The Income Statement
A financial statement that reports a company's assets, liabilities, and equity at a specific
point in time - ANSWER-The Balance Sheet
Reports the changes in company equity, from the opening balance to the end of the
period balance. - ANSWER-The Statement of Equity
Reports the sources and uses of cash by a business - ANSWER-The Statement of
Cash Flow
Accounting Cycle - ANSWER-1. Analyze and record transactions
2. Post transactions to ledger
3. Prepare an unadjusted trial balance
4. Prepare adjusted entries at the end of the period
5. Prepare adjusted trial balance
6. Prepare financial statements
If customers pays at the time of sale you must enter it as a - ANSWER-Sales Receipt
If customers does not pay at the time of sale you must enter it as a - ANSWER-Invoice
Once and customer has paid an invoice it goes to - ANSWER-Receive payment
Receive payment and sales receipt are followed by - ANSWER-Bank deposit
Step 4 of The Accounting Cycle: Preparing adjusted entries includes - ANSWER-
Deferrals, Accruals, Missing Transactions, and Tax Adjustments
,Removing transactions that belong to a different period - ANSWER-Deferral
Opposite of deferral. Concern future payments or expenses - ANSWER-Accruals
The Business is a separate entity, so the activities of a business must be kept separate
from any other financial activities of its business owners - ANSWER-Economic Entity
Assumption
Only transactions that can be proven should be recorded in accounting practices. And
what this means is that businesses must be able to prove transactions through such
things as receipts, billing statements, invoices, and bank statements. - ANSWER-
Reliability Assumption
All info that is relative to the business and is important to a lender or investor has to be
disclosed in financial statements or in the notes of the statements - ANSWER-Full
Disclosure Principle
When choosing between two solutions, the one that will be least likely to overstate
assets and income should be selected. - ANSWER-Conservatism Assumption
States that an amount can be ignored if its effect on the financial statements is small
and not misleading - ANSWER-Materiality Principle
Once you adopt an accounting principle or method, continue to follow it consistently in
future accounting periods so that the results reported from period to period are
comparable - ANSWER-Consistency Principle
One currency is used throughout all accounting activities. In the US the dollar is the
currency used in accounting. When this currency is used, inflation is not a consideration
in recording finances - ANSWER-Monetary Unit Assumption
Refers to a business that is stable enough to operate and meet its obligation for the
future - ANSWER-Going Concern Assumption
Revenue is recognized when payment is received and expenses are recognized when
paid out - ANSWER-Cash-Basis Account Method
Revenues are reported when they are earned and expenses are reported when they are
incurred - ANSWER-Accrual Method of Accounting
A combo of cash-basis and accrual methods - ANSWER-Hybrid Accounting
Things your company owns that you can easily convert to cash and expect to do so
within the next 12 months - ANSWER-Currents Assets
, Things your company owns that you expect to have for more than 12 months -
ANSWER-Long-term Assets
The total you get when adding all current assets and all long-term assets. This should
equal Total Liabilities+Toal Equity - ANSWER-Total Assets
A physical asset, such as inventory, vehicle, or a building - ANSWER-Tangible Asset
Not a physical asset. Examples would be a copyright, patent, or brand recoginition -
ANSWER-Intangible Asset
A signed document containing a written promise to pay a stated sum to a specified
person or bearer at a specified ate or on-demand - ANSWER-Promissory Note
Notes Receivable - ANSWER-A current or non-current asset
Notes Payable - ANSWER-A current or non-current liability
Interest Equation - ANSWER-Principle x Interest (mulitply by 30/365 to find day)
Receivables, loans, or other debits that have virtually no chance of being paid -
ANSWER-Accounts Uncollectible
An expense that a business incurs once the repayment of credit previously extended to
a customer is estimated to be uncollectible - ANSWER-Bad Debt
A bad debt is charged to expense as soon as it is apparent that an invoice will not be
paid. This is easier for business owners. - ANSWER-Direct Write-Off Method
An estimate of the future amount of bad debt is charged to a reserve account as soon
as a sale is made. This is more accurate but complex - ANSWER-Allowance Method
A contra-asset account that has a natural credit balance. Balances decrease with debits
and increase with credits - ANSWER-Accumulated Depreciation Account
An expense account on the income statement showing the cost of merchandise to the
business - ANSWER-Cost of Goods Sold (COGS)
An inventory system that continuously update the inventory account - ANSWER-
Perpetual
An inventory system that updates the inventory account only at specified intervals -
ANSWER-Periodic
Inventory Cost Flows - ANSWER-FIFO, LIFO, and Average Cost
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